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NASCAR Driver Kyle Larson Uses N-Word During Virtual Race

NASCAR driver Kyle Larson has big problems -- the 27-year-old dropped an n-bomb during a virtual race on Easter Sunday ... with the hard R and all.

Larson -- who drives the #42 car during the NASCAR Cup Series -- was competing in an iRacing event, streamed live to thousands of people on Twitch.

After crashing during Lap 6, Larson apparently had a difficult time communicating with other drivers and that's when things got bad.

"You can't hear me? Hey, n****," Larson said casually.

WHAT?!?!

The comment was immediately met with shock from other drivers, who commented (vocally) on the livestream,

Anthony Alfredo: “Kyle, you’re talking to everyone bud.